Please see the notes on the chart. Correction - it is not 50 day MA but 200 MA. Sorry.
The 200 MA would offer pretty major resistance and the long term charts are still bullish. We are dealing with a single news event currently. Any good news on oil or its demand and a huge lift will happen. Price needs to be below the 200 MA and the 200 MA needs to be pointing down, not up for this to be a turn for me IMO. The world is awash with interest free money and money will find its way for the best return.
correct, many of the highly leveraged drillers of shale will go bust with oil below 70 bucks a barrell, Major banks will feel the squeeze to as cap X by major oil will not be taking loans. Deflation spiral, The SPX for some time was over priced and oil is starting to close this gap